Driving change: the influence of female directors on ESG performance in the automotive industry

Board gender diversity has garnered significant attention in recent years as a component of internal governance. The automobile industry is a conventional sector characterized by its significant scale and the board of directors has historically been predominantly male. The share of female board members increased due to the rapid development of the new energy vehicle industry, which emerged as a combination of high-tech and traditional cars, in the last two decades. This study examines the relationship between the proportion of female directors and the environmental, social, and governance (ESG) performance of companies in the automotive sector. This study collected data on the proportion of female board members and environmental, social, and governance (ESG) ratings for 50 automotive industry businesses across 13 countries from 2002 to 2022. The findings indicate a positive relationship between the proportion of female serving as directors and the environmental, social, and governance (ESG) performance of automotive industry. Furthermore, this study demonstrates that there was no delay in the favorable correlation between the proportion of female directors and the environmental, social, and governance (ESG) performance of companies in the automotive sector.